Deal Overview
In Spring 2025, I had the pleasure of working on a unique leasing assignment in Edgewater that showcased the importance of creative problem-solving in commercial real estate. My client was a landlord with a distinctive mixed-use building featuring classic, almost New Orleans-like architecture that added character to the neighborhood. The assignment seemed straightforward at first: find tenants for approximately 5,000 SF of space that the landlord’s personal business was vacating. As with many commercial real estate deals, what appeared simple on the surface quickly revealed complexity that would require strategic thinking to overcome. The property’s distinctive architecture made it a standout in the area, but also presented unique challenges when it came to dividing and marketing the space effectively.
Initial Challenge
The main hurdles we faced were first, the 5,000 SF space was quite large for many potential tenants in the area. Second, the property didn’t include dedicated parking, a significant drawback in a city where parking is often at a premium. Perhaps most challenging was the layout itself. Once we managed to rent the front half of the space, we were left with an even more difficult proposition: the back portion faced an off-street, had no windows, and featured a strange, uninviting entrance. Which led to the third challenging point, any new tenant for the backspace would need to make considerable modifications to the building to suit their specific needs, adding to their upfront costs. This unusual configuration meant we essentially had two very different spaces to lease, with the rear section being particularly challenging due to its lack of visibility and natural light until storefronts windows were added.
Strategy & Solutions
For the front section, we implemented typical online marketing strategies, which quickly attracted interest. A prospective tenant emerged who was excited about the prime corner location and charming architecture. However, they only needed around 3,000 SF, leaving the more challenging back portion still available. This situation required a more targeted approach. We recognized that we needed to find a special type of tenant for the rear space, one who either had the patience to wait for significant work to be completed or the resources and willingness to handle renovations themselves. Additionally, this tenant would need to be comfortable with a less visible location, perhaps a business that relied more on appointments than walk-in traffic. Joe Fernandez joined me on this challenge, and together we began networking specifically with businesses that might see the hidden potential in this unusual space rather than focusing solely on its current limitations.
Results & Impact
Our strategy paid off beautifully. The corner space, with its high visibility and architectural charm, was leased to a MyGym franchisee who was drawn to the building’s character and corner location. But that created the more challenging backspace, our targeted networking led us to a Med Spa business that was expanding from Texas into the Florida market. This tenant was perfect for the rear space, as their business model primarily operated on an appointment basis, making street visibility less crucial. Additionally, they had experience with renovations and saw the blank-slate nature of the space as an opportunity rather than an obstacle. They could customize the interior exactly to their specifications without having to work around existing features. By the end of Summer 2025, the entire 5,000 SF was successfully leased, resulting in a +/- $1,400,000 deal that transformed a potential problem property into a fully occupied, revenue-generating asset.
Lessons Learned & Next Steps
This deal reinforced several valuable lessons about commercial real estate leasing. First, sometimes the optimal solution involves dividing a space rather than holding out for a single tenant, even if that means creating a more challenging secondary space. Second, understanding the specific needs of different business types allows for targeted marketing rather than generic approaches. Businesses that operate on an appointment basis, like medical spas, have different priorities than retail operations that depend on foot traffic and visibility. Looking ahead, we plan to apply this segmented approach to similar properties, identifying potential tenants based on their specific business models and space requirements rather than treating all commercial tenants as having identical needs. For properties with unusual layouts or challenging aspects, we’ll develop specific marketing materials that reframe these “limitations” as opportunities for the right business, highlighting the unique advantages that might not be immediately apparent.
- Deal Type: Lease
- Date: Spring 2025
- Location: Edgewater
- Main Challenge: Leasing a 5,000 SF space with no included parking, where the back half had poor visibility, no windows, and a strange entrance
- Solutions: Split the space between two tenants, securing a MyGym franchise for the prime corner location and a Texas-based Med Spa expansion for the challenging rear space
